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TK Halfday Tutorial 6/4/2013 1:00 PM "Scaling Agile Up to the Enterprise and Staying Lean" Presented by: Dean Leffingwell Leffingwell, LLC Brought to you by: 340 Corporate Way, Suite 300, Orange Park, FL 32073 8882688770 9042780524 [email protected] www.sqe.com

Scaling Agile Up to the Enterprise and Staying Lean

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Scaling agile from the team to the program to the portfolio level of the enterprise requires the inclusion of additional roles—product manager and system architect; activities—release planning and program retrospectives; and artifacts—portfolio and program visions and backlogs. Practitioners must constantly increase scale and scope, while keeping both the system and the process lean and agile. Dean Leffingwell describes how to accomplish this with the Scaled Agile Framework™, a knowledge-base of proven lean and agile practices for enterprise-class software development. Dean approaches the scaling problem from the perspective of lean thinking and principle of product development flow, illustrating how their core principles help deliver business results at scale, while keeping the system—and the enterprise—responsive. Learn some key principles of lean thinking and product development flow, participate in lightweight exercises designed to reinforce these principles, and leave with an understanding of how to apply them in your organization.

Citation preview

 

 

TK Half‐day Tutorial 6/4/2013 1:00 PM 

       

"Scaling Agile Up to the Enterprise and Staying Lean"

   

Presented by:

Dean Leffingwell Leffingwell, LLC

         

Brought to you by:  

  

340 Corporate Way, Suite 300, Orange Park, FL 32073 888‐268‐8770 ∙ 904‐278‐0524 ∙ [email protected] ∙ www.sqe.com

Dean Leffingwell Leffingwell, LLC

A renowned methodologist, author, coach, entrepreneur, and executive, Dean Leffingwell founded Requisite, Inc., which was acquired by Rational Software. As a vice president at Rational (now part of IBM), Dean’s responsibilities included the Rational Unified Process. As chief methodologist at Rally Software, he worked with large enterprises to achieve the business benefits of agility by helping to define and implement the tooling and practices needed to support large-scale agile development. Dean is the author of Agile Software Requirements, Scaling Software Agility, and Managing Software Requirements. His most recent project is the Scaled Agile Framework (scaledagileframework.com) which describes a comprehensive system for scaling lean and agile practices to the largest software enterprises.  

1

Scaling Agile Up to the Enterprise and Staying Lean:A Workshop

Scaling Agile Up to the Enterprise and Staying Lean:A WorkshopA WorkshopA Workshop

By Dean Leffingwell

1© 2008 - 2013 Leffingwell, LLC.© 2008 - 2013 Leffingwell, LLC. All rights reserved.

Agile Development Conference WestLas Vegas, NevadaJune 2013

Agenda

Scaled Agile Framework Overview

Be Agile

S

Scale to the Program: The Agile Release Train

Scale to the Portfolio: Agile Portfolio Management

Be Lean

2© 2008 - 2013 Leffingwell, LLC.

Scale Leadership

2

About Dean Leffingwell

Founder and CEOProQuo Inc InternetFounder and CEOProQuo Inc Internet

Creator: Scaled Agile FrameworkCreator: Scaled Agile Framework ProQuo, Inc., Internet

identity

Senior VPRational SoftwareResponsible for Rational Unified Process (RUP) & Promulgation of UML

Founder/CEO Requisite, Inc. Makers of RequisitePro

Founder/CEO RELA, Inc.

ProQuo, Inc., Internet identity

Senior VPRational SoftwareResponsible for Rational Unified Process (RUP) & Promulgation of UML

Founder/CEO Requisite, Inc. Makers of RequisitePro

Founder/CEO RELA, Inc.

Agile FrameworkFellow: Lean Systems SocietyAgile Enterprise Coach:To some of the world’s largest enterprises

Chief MethodologistRally Software

Cofounder/AdvisorPing Identity, Roving Planet, Silver Creek Systems Rally

Agile FrameworkFellow: Lean Systems SocietyAgile Enterprise Coach:To some of the world’s largest enterprises

Chief MethodologistRally Software

Cofounder/AdvisorPing Identity, Roving Planet, Silver Creek Systems Rally

3© 2008 - 2013 Leffingwell, LLC.

RELA, Inc. Colorado MEDtechRELA, Inc. Colorado MEDtech

Silver Creek Systems, Rally SoftwareSilver Creek Systems, Rally Software

The Scaled Agile Framework (SAFe)The Scaled Agile Framework is a proven, publicly-facing framework

for applying Lean and Agile practices at enterprise scale

®

Synchronizes alignment, collaboration and deliveryWell defined in booksand now on the webScales successfully to large numbers of practitioners and teams

Core values:

4© 2008 - 2013 Leffingwell, LLC.

AlignmentCode QualityProgram ExecutionTransparency

3

Contributors

Principal Contributors

AssociateMethodologist

Drew Jemilo Colin O’Neill

Alex Yakyma

5© 2008 - 2013 Leffingwell, LLC.

Alan Shalloway

CommunityEnterpriseAdoptersAcknowledgements

6© 2008 - 2013 Leffingwell, LLC.

4

Agenda

Scaled Agile Framework Overview

Be Agile

S

Scale to the Program: The Agile Release Train

Scale to the Portfolio: Agile Portfolio Management

Be Lean

7© 2008 - 2013 Leffingwell, LLC.

Scale Leadership

Lean Thinking Provides the Tools We Need

Respect for People

Product Development

FlowKaizen

8© 2008 - 2013 Leffingwell, LLC.

5

Goal: Speed, Value, Quality

All we are doing is looking at the timeline, from the moment the customer gives usAll we are doing is looking at the timeline, from the moment the customer gives us

THE GOALSustainably shortest lead time

THE GOALSustainably shortest lead time

from the moment the customer gives us an order to the point where we collect the cash. And we are reducing the time line by reducing the non-value added wastes.

Taiichi Ohno

We need to figure out a way to deliver software so fast that our customers don’t have time to change their minds.

from the moment the customer gives us an order to the point where we collect the cash. And we are reducing the time line by reducing the non-value added wastes.

Taiichi Ohno

We need to figure out a way to deliver software so fast that our customers don’t have time to change their minds.

Respect for People

Product Development

FlowKaizen

9© 2008 - 2013 Leffingwell, LLC.

Sustainably shortest lead timeBest quality and value to people and societyMost customer delight, lowest cost, high morale, safety

Sustainably shortest lead timeBest quality and value to people and societyMost customer delight, lowest cost, high morale, safety

Mary Poppendieck

Most software problems will exhibit themselves as a delay.

Alan Shalloway

Mary Poppendieck

Most software problems will exhibit themselves as a delay.

Alan Shalloway

Respect for People

Your customer is whoever consumes your workYour customer is whoever consumes your work

Develop individuals and teams; Develop individuals and teams;

y

Don’t trouble your customers

Don't force people to do wasteful work

Don't overload them

Don't make them wait

Don't impose wishful thinking

y

Don’t trouble your customers

Don't force people to do wasteful work

Don't overload them

Don't make them wait

Don't impose wishful thinking

Respect for People

Product Development

FlowKaizen

PEOPLE

10© 2008 - 2013 Leffingwell, LLC.

they build productsEmpower teams to continuously improveBuild partnerships based on trust and mutual respect

they build productsEmpower teams to continuously improveBuild partnerships based on trust and mutual respect

p g

Equip them with problem-solving tools

Form long-term relationships based on trust

p g

Equip them with problem-solving tools

Form long-term relationships based on trust

6

Kaizen

Steady, small improvements

C id ll d t th i l t

Steady, small improvements

C id ll d t th i l t

BECOME RELENTLESS IN:Reflection

BECOME RELENTLESS IN:Reflection

Consider all data, then implement change rapidly

Reflect at key milestones to identify and improve shortcomings

Use tools like retrospectives, root cause analysis, and value stream mapping

P t t th k l d b b

Consider all data, then implement change rapidly

Reflect at key milestones to identify and improve shortcomings

Use tools like retrospectives, root cause analysis, and value stream mapping

P t t th k l d b b

Respect for People

Product Development

FlowKaizen

11© 2008 - 2013 Leffingwell, LLC.

ReflectionContinuous improvement as an entreprise value

ReflectionContinuous improvement as an entreprise value

Protect the knowledge base by developing stable personnel and careful succession systems

Protect the knowledge base by developing stable personnel and careful succession systems

Foundation: Leadership

Develop people. They will develop solutionsDevelop people. They will develop solutionssolutions.Management understands and teaches lean and agile behaviorsManagement is trained in the practices and tools of continuous improvementManagement takes responsibility for Lean success

solutions.Management understands and teaches lean and agile behaviorsManagement is trained in the practices and tools of continuous improvementManagement takes responsibility for Lean success

Respect for People

Product Development

FlowKaizen

Lean-Thinking Manager-Teachers

M t i t i d i

12© 2008 - 2013 Leffingwell, LLC.

Teaches employees problem solving and corrective actionManagers are expected to see with their own eyes

Teaches employees problem solving and corrective actionManagers are expected to see with their own eyes

Management is trained in lean thinking Bases decisions on this long term philosophy

7

Principles of Product Development Flow

1. Take an economic view

2

1. Take an economic view

22. Actively manage queues

3. Understand and exploit variability

4. Reduce batch sizes

5. Apply WIP constraints

6. Control flow under uncertainty:

2. Actively manage queues

3. Understand and exploit variability

4. Reduce batch sizes

5. Apply WIP constraints

6. Control flow under uncertainty:

Respect for People

Product Development

FlowKaizen

13© 2008 - 2013 Leffingwell, LLC.

cadence and synchronization

7. Get feedback as fast as possible

8. Decentralize control

cadence and synchronization

7. Get feedback as fast as possible

8. Decentralize controlReinertsen, Don. Principles of Product Development Flow

PPDF #1 – Take an Economic View

Develop an economic framework for

Understand the full value chain

Base your decisions on economics

decision makingEmpower local decision makingDo not consider money already spent

Sequence jobs for maximum benefitIf you only quantify one thing, quantify the cost of delay

C t f

14© 2008 - 2013 Leffingwell, LLC.

Cost of Delay High Weight First

BC

A

Reinertsen, Don. Principles of Product Development Flow

8

PPDF #2 – Actively Manage Queues

Email from a client service organization: “Thank you for contacting us. We are experiencing increased volumes and apologize in advance for the delay. Our goal is to contact you within…..

Understand Little’s Law

Wait time = queue length/processing rateControl queue sizes to control wait timesOperating at high levels of

15© 2008 - 2013 Leffingwell, LLC.

Operating at high levels of utilization increases variabilityMeasure cycle time and queue length with cumulativeflow diagrams

Reinertsen, Don. Principles of Product Development Flow

PPDF #3 – Understand and Exploit Variability

Risk-taking is central to value creation in product development

We cannot add value without ddi i bilitadding variability

Development variability can increase economic valueBuffers trade money and time for variability reductionSchedule buffers convert uncertain earliness to certain latenessManaging variability

E P I C

E P I CVA

LU

E

16© 2008 - 2013 Leffingwell, LLC.

Managing variability– Planning and requirements

forecasting are exponentially easier in short-term horizons

– Research spikes, incremental value delivery and fast feedback are critical

By investing relatively more in beneficial areas and abandoning wasteful ones, the enterprise maximizes economic benefit

By investing relatively more in beneficial areas and abandoning wasteful ones, the enterprise maximizes economic benefit

Reinertsen, Don. Principles of Product Development Flow

9

PPDF #4 – Reduce Batch Size

Small batches go through the system faster, with lower variability

L b t h i i i bilitL b t h i i i bilit R d i b t h iR d i b t h iLarge batch sizes increase variabilityHigh utilization increases variabilitySevere project slippage is the most likely result

Large batch sizes increase variabilityHigh utilization increases variabilitySevere project slippage is the most likely result

Reducing batch size – Reduces cycle time; faster feedback– Decreases variability and risk

Most important batch is the transport (handoff) batch Proximity (co-location) enables small batch sizesGood infrastructure enables small batches (build and test automation,

Reducing batch size – Reduces cycle time; faster feedback– Decreases variability and risk

Most important batch is the transport (handoff) batch Proximity (co-location) enables small batch sizesGood infrastructure enables small batches (build and test automation,

17© 2008 - 2013 Leffingwell, LLC.

( ,continuous integration, etc) Loose architectural coupling enables small batches

( ,continuous integration, etc) Loose architectural coupling enables small batches

Slippage in projects rises exponentially with duration

Fig. Source: Poppendieck. Implementing Lean Software Development Reinertsen, Don. Principles of Product Development Flow

Exercise – Large Batch Push

Batch Push

1. Create groups of five with ten1. Create groups of five with ten pennies per group. One person is the time keeper. The remaining four people process the pennies.

2. Person by person, flip all pennies one at a time, recording your own results (heads or tails)

3 P ll i t th ti

18© 2008 - 2013 Leffingwell, LLC.

3. Pass all pennies at the same time to the next person

4. The time keeper records the time from the start of the first flip to the completion of the last flip Timebox:

5 minutes

10

Exercise – Small Batch Pull

Small Batch Pull

1 Same four person process1. Same four person process

2. Flip each penny one at a time and record your own results

3. Pass each penny as flipped

4. The time keeper records the time from the start of the first flip to the completion of the last flip

19© 2008 - 2013 Leffingwell, LLC.

completion of the last flip

Timebox:5 minutes

Discussion – Rework

A defect is discovered on the third penny at station four. All pennies have the defect.The defect was induced at station three, and requires 10 sec. of rework at station threeH h k i i d i h ll?

Timebox:5 minutes

How much rework is required in push vs. pull?

Push

20© 2008 - 2013 Leffingwell, LLC.

1 2 3 4

Pull

11

Finding Economic Batch Size

Optimum batch size is an example of a “U-Curve optimization”

Higher transaction

Optimum Batch Size

Total Cost

T tiHolding

Cos

t

Higher transaction costs shift optimum batch size higher

Higher holding costs shift it lower

Batch size

21© 2008 - 2013 Leffingwell, LLC.

Transaction Cost

Holding Cost

Items per Batch

reduction probably saves 2X what you think!

Agenda

Scaled Agile Framework Overview

Be Agile

S

Scale to the Program: The Agile Release Train

Scale to the Portfolio: Agile Portfolio Management

Be Lean

22© 2008 - 2013 Leffingwell, LLC.

Scale Leadership

12

Agile Accelerates Value Delivery

Documents Documents Unverified Code Software

23© 2008 - 2013 Leffingwell, LLC.

Accelerating Value DeliveryEarly value delivery drives first to market, fast feedback, and

profitability

Valu

e D

eliv

ery

24© 2008 - 2013 Leffingwell, LLC.

Time

V

13

Exercise – Accelerating Value Delivery

Project A Project B Project C

Scenario 1 – Serial Delivery

Time

Scenario 2 –Parallel Delivery

Project A

Your team has three projects. Each will take the entire team one month and delivers one unit of value.

Plot value delivery curves by doing the projects serially and in parallel (simultaneously)

j

Project B

Project C

Time

25© 2008 - 2013 Leffingwell, LLC.

y p ( y)

– Assume 20% task switching overhead for each team member in Scenario 2

Hint: Plot the serial case firstTimebox:10 minutesTime

Valu

e

Makes Money Faster

VA

LUE

DE

LIV

ER

Y

26© 2008 - 2013 Leffingwell, LLC.

TIME

14

Reduces Risk

Waterfall

DeadlineR

isk

A il

?

27© 2008 - 2013 Leffingwell, LLC.

Agile

Time

Avoids the Death March and Burnout

Deadline

Pres

sure

Peak performance achieved and maintained indefinitely at a sustainable pace

28© 2008 - 2013 Leffingwell, LLC.

Time

15

Delivers Better Fit for Purpose

agile(adaptive) plan, result

Measure ofwaterfall customerdissatisfaction

29© 2008 - 2013 Leffingwell, LLC.

Time

waterfall plan, result

Agile Teams

Empowered, self-organizing, self-managing teams with developers, testers, content authorityTeams deliver valuable, fully tested software increments every two weekstwo weeksTeams apply Scrum (and Kanban) project management practices and XP technical practicesTeams operate under program vision, system, architecture and UX guidance

30© 2008 - 2013 Leffingwell, LLC.

16

Agile Teams are Lean

SAFe Scrum Scrum is Founded on LeanCross functional teamsTime boxes to limit WIPSprints provide fast feedbackEmpowered local decision

Continuous Integration

User Stories

XP Inspired Technical Practices

Empowered, local decision makingColocation reduces batch size and communication overhead

XP. Quintessentially Lean?TDD and ATDD limit waste and scrap

31© 2008 - 2013 Leffingwell, LLC.

Collective Ownership

Test‐First:TDDATDD

Emergent Design

Scalability Required

Agile Analysis

g

XP Inspired

Small batch sizesFast feedback:

Test firstContinuous integrationTest automation

Collective ownership

PPDF #5 – Apply WIP Constraints

WIP Constraints force capacity matching and increase flow

Apply WIP constraints Force capacity matchingAccelerate delivery

Timebox Prevent uncontrolled expansion of workMake waiting times predictable

Purge lower value projectswhen WIP is too high

Increase efficiency and throughput of remaining work

Constrain local WIP pools Constrains global WIP pools

32© 2008 - 2013 Leffingwell, LLC.

It is far easier to start a project than it is to finish one.It is far easier to start a project than it is to finish one.

Make WIP continuously visible

1) Understand 2) take action

Reinertsen, Don. Principles of Product Development Flow

17

Exercise – WIP Constraints Today

33© 2008 - 2013 Leffingwell, LLC.

Timebox:5 minutes

1. Above is a software teams visible information radiator2. How are they doing? How do you know that?3. What would be the effect of three story WIP constraint on

development and test?

Agenda

Scaled Agile Framework Overview

Be Agile

S

Scale to the Program: The Agile Release Train

Scale to the Portfolio: Agile Portfolio Management

Be Lean

34© 2008 - 2013 Leffingwell, LLC.

Scale Leadership

18

Scale to the Program LevelAn empowered, self-organizing, self-managing team-of-agile teams committed for continuous value delivery

Cadence based, synchronized

Aligned to a common missiong

35© 2008 - 2013 Leffingwell, LLC.

Fast feedback: fully tested, system-level solutions every 8-12 weeks

Common sprint lengths and normalized velocity

Face-to-face planning cadence provides development collaboration, alignment, synchronization, evaluation

PPDF #6 – Control Flow Under Uncertainty

Transforms unpredictable events into predictable eventsTransforms unpredictable events into predictable events

Synchronization causes multiple events to happen at the same timeSynchronization causes multiple events to happen at the same timep

Requires scope or capacity marginMakes waiting times predictable

– If you can’t predict delivery, existing programs become “feature magnets”

Manages load: When load and utilization become too high, you will see a sudden and catastrophic

pRequires scope or capacity marginMakes waiting times predictable

– If you can’t predict delivery, existing programs become “feature magnets”

Manages load: When load and utilization become too high, you will see a sudden and catastrophic

ppScheduled, periodic resynchronization limits variance to a single time intervalRegular, system wide integration provides higher fidelity tests and objective assessmentSynch events facilitate cross

ppScheduled, periodic resynchronization limits variance to a single time intervalRegular, system wide integration provides higher fidelity tests and objective assessmentSynch events facilitate cross

36© 2008 - 2013 Leffingwell, LLC.

preduction in throughput!

preduction in throughput! functional tradeoffs of resources,

scopefunctional tradeoffs of resources, scope

Reinertsen, Don. Principles of Product Development Flow

19

Control Variability with Planning Cadence

Cadence-based planning timeboxes limit variability to a single interval

MaxMaxDeviation

(3X)

Max Deviation

Cadence-based

Asynchronous planning

37© 2008 - 2013 Leffingwell, LLC.

Time

based planning

The Agile Release Train

Align teams to a common vision

The ART is the primary mechanism for accelerated value delivery at scale

Manage interdependencies amongst teams

Provide continuous flow

Common training, common language, common schedule

Self-organizing, self-managing

38© 2008 - 2013 Leffingwell, LLC.

Repeat until further notice. Project chartering not required.

20

The Agile Release Train

Organized around enterprise value streams

Delivers Potentially Shippable Increments (PSI) every eight to twelve weeks

39© 2008 - 2013 Leffingwell, LLC.

Rules of the Release Train

PSI dates for the solution are fixedEstimating, planning and asset integration coordinated with two-week sprint length, aligned cadence and normalized velocityvelocityFortnightly (every two weeks) system integration and system demo milestones are enforcedAll “cargo” (code, docs, supplemental) goes on the trainThe system always runs

40© 2008 - 2013 Leffingwell, LLC.

21

Every Team Must Be on the Train

Waterfall Doesn’t Iterate

Planned releaseWhat do we

integrate here?

Waterfall Doesn t Iterate

delayMRD PRD SRS Dev Drop 1

to QADrop 2 to QATest

drop 1

Release docs

Test drop 2

Ports, certs

Actual release

Integration can’t work here

PSI

41© 2008 - 2013 Leffingwell, LLC.

Agile Iterates

Iterate Iterate Iterate

Release docs

Ports, certs

Iterate Iterate Iterate

Cadence Alone is Not Enough

Planned system release date

…the system is not sprinting ....time spent thinking you are on track I t ton track……. Integrate

and slip!System

External Release

External Release

PSI

Iterate Iterate Iterate Iterate Iterate Iterate

PSI

Iterate Iterate Iterate Iterate Iterate Iterate

Release docs

Port and certs

Port and certs

Release docs

42© 2008 - 2013 Leffingwell, LLC.

External ReleasePSI

Iterate Iterate Iterate Iterate

Release docs

22

Synchronize to Assure Delivery

PSI Second System PSI or Release

System Sys 1 Sys 2 Sys 3 Sys 4 Sys 5 Sys 6 Sys 7 Sys 8

Iterate Iterate Iterate Iterate Iterate Iterate

Iterate Iterate Iterate Iterate Iterate Iterate

yIterations

External Release

External Release

Release docs

Ports certs

Release Docs

PSI

PSI

Continuous Integration

Continuous IntegrationSystem

Team

Dev Teams

43© 2008 - 2013 Leffingwell, LLC.

Iterate Iterate Iterate Iterate Iterate Iterate

External ReleaseRelease Docs

Ports certs

Ports certs

PSIContinuous Integration

Develop on Cadence. Deliver on Demand.

Deliver on Demand

Scenario A: Release less frequently than cadence

Customer Upgrade

Docs and Docs and QA-Release to Market-

Major Release

Docs and Docs and

Feature Release

Major Release

44© 2008 - 2013 Leffingwell, LLC.

Develop on Cadence

Customer previewCustomer preview certscerts Governance Firewallcertscerts

PSIPSI PSIPSI PSIPSI PSIPSI PSIPSIPSIPSI

23

Release Whenever You LikeScenario B: Release on cadence

Scenario C: Release more frequently than cadence

45© 2008 - 2013 Leffingwell, LLC.

PPDF #1 – Take an Economic View

Develop an economic framework for

Understand the full value chain

Base your decisions on economics

decision makingEmpower local decision makingDo not consider money already spent

Sequence jobs for maximum benefitIf you only quantify one thing, quantify the cost of delay

C t f

46© 2008 - 2013 Leffingwell, LLC.

Cost of Delay High Weight First

BC

A

Reinertsen, Don. Principles of Product Development Flow

24

Features and the Program Backlog

Features are identified, prioritized, estimated, and maintained in the Program Backlog

The program backlog is the authority for what

Features are services that fulfill user needs

The program backlog is the authority for what gets built by each train

47© 2008 - 2013 Leffingwell, LLC.

PPDF #1 – Take an Economic View: Prioritizing Backlog for Optimal ROI

To prioritize based on lean

In a flow system, job sequencing is the key to economic outcomes

To prioritize based on lean economics, we need to know two things:

1. What is the Cost of Delay (CoD) in delivering value

2. What is the cost to implement

48© 2008 - 2013 Leffingwell, LLC.

the value thing

Principle of Product Development Flow E3: If you only quantify one thing, quantify the Cost of Delay. Reinertsen 2009Principle of Product Development Flow E3: If you only quantify one thing, quantify the Cost of Delay. Reinertsen 2009

25

CoD Economics: Shortest Job First

When the cost of delay is equal, do the Shortest Job FirstWhen the cost of delay is equal, do the Shortest Job First

Cost of Delay

A

Shortest Job First

C

A

B

Longest Job FirstCost of Delay

A 1 3

B 3 3

Time

1 x 3 =

(1 + 3) x 3 =

49© 2008 - 2013 Leffingwell, LLC.

From “The Principles of Product Development Flow,” by Donald G. Reinertsen. Celeritas Publishing: 2009. Copyright 2009, Donald G. Reinertsen

Time

39

30

Delay Cost

B 3 3

C 10 3C

B

A

10 x 3 =

(10 + 3) x 3 =

CoD Economics: High Delay Cost First

When the effort is equal, do the high CoD job firstWhen the effort is equal, do the high CoD job first

High Delay Cost First

A

Cost of Delay

Low Delay Cost First

A 3 10

B 3 3

Time

BC

BC

Cost of Delay

3 x 3 =

(3 + 3) x 1 = 6

3 x 3 =

50© 2008 - 2013 Leffingwell, LLC.

From “The Principles of Product Development Flow,” by Donald G. Reinertsen. Celeritas Publishing: 2009. Copyright 2009, Donald G. Reinertsen

TimeDelay Cost

B 3 3

C 3 160 A(3 + 3) x 10 =

26

CoD Economics: Weighted Shortest Job First

When nothing is equal, do the Weighted Shortest Job First!

WSJF = Cost of Delay / Effort

When nothing is equal, do the Weighted Shortest Job First!

WSJF = Cost of Delay / Effort

High Delay Cost FirstCost of Delay

yy

Low Delay Cost First

Time

C

3

BC

A

A 1 10 10

B 3 3 1

Cost of Delay

1 x 3 =

(1 + 3) x 1 = 4

51© 2008 - 2013 Leffingwell, LLC.

From “The Principles of Product Development Flow,” by Donald G. Reinertsen. Celeritas Publishing: 2009. Copyright 2009, Donald G. Reinertsen

TimeDelay Cost

B 3 3 1

C 10 1 0.1

130 A

B10 x 3 =

(10 + 3) x 10 =

Cost of Delay ComponentsRelative value in the eyes of the customer

“They prefer this over that”.

Revenue impact on the business?

Penalty potential on the business?

User/ Business

ValuePenalty potential on the business?

How User Value Decays Over Time

Is there a fixed deadline?

Will they wait for us or move to another solution?

What is the effect on customer satisfaction now?

Time Value

52© 2008 - 2013 Leffingwell, LLC.

What else does this do for our business?

Reduce the risk of this or future delivery?

Is there value in the information we will receive?

Enable new business opportunities?

Risk Reduction/ Opportunity Enablement

(RR|OE)

27

WSJF Prioritization MatrixWeighted Shortest Job First (WSJF) provides

the greatest economic benefit

WSJF =User Value + Time Value + RR|OE Value

Job Size

53© 2008 - 2013 Leffingwell, LLC.

Scale for each parameter: 1, 2, 3, 5, 8,13, 21Do one column at a time, start by picking the smallest item and giving it a “1”. (There must be at least one “1” in each column!)Highest WSJF is highest priority

Exercise: Prioritizing Program Backlog

As Lean Thinkers

Take 5 minutes and identify your top 10 personal backlog items

Then using the priorwe can prioritize our work so that we can achieve the best economic outcomes for our stakeholders

Then, using the prior page, prioritize three of your personal backlog items using WSJF

Notes: 1. Estimate each backlog item one column ata time

54© 2008 - 2013 Leffingwell, LLC.

a time

2. There must be a “1” in each column:

Timebox:15 minutes

28

PPDF #2 Control Queues for Fast Response

Long queues, plus high utilization = unpredictability!

Little’s Law: the average wait time l th l thequals the average queue length

divided by the average processing timeLong queues. Long waits. Slow deliveryBacklogs are a form of queue(If items are committed, then it is a queue)Plus: Operating at high levels of utilization increases unpredictability

55© 2008 - 2013 Leffingwell, LLC.

For fast, reliable service:Keep the program backlogs short and uncommittedLimit WIP to keep planned utilizations at 80% or below

Reinertsen, Principles of Product Development Flow, 2009.

Agenda

Scaled Agile Framework Overview

Be Agile

S

Scale to the Program: The Agile Release Train

Scale to the Portfolio: Agile Portfolio Management

Be Lean

56© 2008 - 2013 Leffingwell, LLC.

Scale Leadership

29

Scale to the Portfolio

Lean principles emphasize sustainably fastest value delivery

Centralize strategy. Decentralize execution.

Local decision making

Portfolio vision guides investments in solutions and the enterprise

57© 2008 - 2013 Leffingwell, LLC.

Portfolio vision guides investments in solutions and the enterprise architecture needed to support customer and business needs

Business epic kanban system provides visibility and work-in-process limits to support continuous product development flow

Objective metrics support governance and kaizen

Lean-Agile Program Portfolio Management

SAFe patterns provide a transformation roadmap

#1 Centralized control Decentralized decision-making#2 Project overload Continuous value flow#3 Detailed project plans Lightweight business cases#4 Centralized annual planning Decentralized, rolling-wave planning#5 Work Breakdown Structure Agile estimating and planning#6 Project-based funding Agile Release Trains

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#7 Projects and PMBOK Self-managing teams and programs

#8 Waterfall milestones Objective, fact-based measures and milestones

Legacy PPM Agile PPM

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#8 – Decentralize Control

Centralize control for decisions that

– Are infrequent– Can be applied globally; have significant economies of

scale– Age well

Decentralize control for all others

– Inefficiency of decentralization costs less than the value of faster response time

– Local decisions have better local information

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Control the economic logic behind a decision, not the entire decision

– Set the framework, empower others to make the decisions

Reinertsen, Don. Principles of Product Development Flow

Decentralize Control

Central Decision MakingCentral Decision Making

Kanban

Market Feedback

tfolio

Bac

klog

Strategy

Investment Themes

Prog

ram

Back

logBa

cklog

Local Decision Making

One theme drives cross cutting Epics

Themes Drive Release Train

Port

Value Stream feedback

Value Stream feedback

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Prog

ram

BPr

ogra

m Ba

cklog

Release Train Operating Budgets

Value Stream feedback

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Agile Program Portfolio Management

Agile Program Portfolio Management fulfills key responsibilities

Decentralized decision-making

Agile estimating and planning

Continuous value flowLightweight business casesDecentralized, rolling-wave planning

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Agile Release TrainsAgile Program Management

Objective, fact-based measures and milestones

Agenda

Scaled Agile Framework Overview

Be Agile

S

Scale to the Program: The Agile Release Train

Scale to the Portfolio: Agile Portfolio Management

Be Lean

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Scale Leadership

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Foundation: Leadership

Develop people. They will develop solutionsDevelop people. They will develop solutionssolutions.Management understands and teaches lean and agile behaviorsManagement is trained in the practices and tools of continuous improvementManagement takes responsibility for Lean success

solutions.Management understands and teaches lean and agile behaviorsManagement is trained in the practices and tools of continuous improvementManagement takes responsibility for Lean success

Respect for People

Product Development

FlowKaizen

Lean-Thinking Manager-Teachers

M t i t i d i

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Teaches employees problem solving and corrective actionManagers are expected to see with their own eyes

Teaches employees problem solving and corrective actionManagers are expected to see with their own eyes

Management is trained in lean thinking Bases decisions on this long term philosophy

On “Managing” Knowledge Workers“Workers are knowledge workers if they are more knowledgeable

about the work they perform than their bosses.”

Workers themselves are best placed Workers themselves are best placed pto make decisions about how to perform their work and how to modify processes to improve how their work is performed. To effectively lead knowledge workers, the workers must be heard and respectedKnowledge workers have to manage

pto make decisions about how to perform their work and how to modify processes to improve how their work is performed. To effectively lead knowledge workers, the workers must be heard and respectedKnowledge workers have to manage

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Knowledge workers have to manage themselves. They have to have autonomy.Continuing innovation has to be part of the work, the task and the responsibility of knowledge workers.

Knowledge workers have to manage themselves. They have to have autonomy.Continuing innovation has to be part of the work, the task and the responsibility of knowledge workers.

Peter Drucker

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Leadership Styles

Leader as Expert

The effectiveness of your workers is determined in large part by your personal leadership style

Leader as Expert

Leader as Conductor

Leader as Developer

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Leader as Developer of People

Change in orientation

A post-heroic, lean leadership style

– Direct report-centric, rather than manager-centric

Behaviors– Creates a team jointly responsible for

success

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– Asks “How can each problem be solved in a way that further develops my direct reports’ commitment and capabilities?”

– Allows leader to spend more time managing laterally and upward

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Drive: Surprising Truth About What Motivates Us

MMPP

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Video Source: http://www.youtube.com/watch?v=u6XAPnuFjJc&feature=youtu.be

Book: Drive: The Surprising Truth About What Motivates Us by Daniel H. Pink. 2011 Timebox:

15 minutes

Another Perspective on Leadership

Quietly read the article “Leadership as a Task, Rather than an IdentityUnderline any sentences that you find interesting or thought provokingBe ready to share your thoughts

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Source: Harvard Business Review article "Leadership in Online Labs” Byron Reeves, Thomas W. Malone, and Tony O’Driscoll. 2008.Source: Harvard Business Review article "Leadership in Online Labs” Byron Reeves, Thomas W. Malone, and Tony O’Driscoll. 2008.

Timebox:10 minutes

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Excerpts from a Harvard Business Review article Leaderships Online Labs- May 2008 by Byron Reeves, Thomas W. Malone, and Tony O’Driscoll

"The organizational and strategic challenges facing players who serve as [online] game leaders are familiar ones: recruiting, assessing, motivating, rewarding, and retaining talented and culturally diverse team members; identifying and capitalizing on the organization’s competitive advantage; analyzing multiple streams of constantly changing and often incomplete data in order to make quick decisions that have wide-ranging and sometimes long-lasting effects. But these management challenges are heightened in online games because an organization must be built and sustained with a volunteer workforce in a fluid and digitally mediated environment.”g y

"Put simply, online games can be informal but realistic simulators for contemporary leadership training… Perhaps the most striking aspect of leadership in online games is the way in which leaders naturally switch roles, directing others one minute and taking orders the next. Put another way, leadership in games is a task, not an identity—a state that a player enters and exits rather than a personal trait that emerges and thereafter defines the individual.”

"Don’t get us wrong: Leadership stars do exist in games. Some guild leaders have successfully led 100-strong teams for a year or more—an eternity in this new medium. As in business, players with exceptional relationship skills are particularly good at forming effective teams, delegating responsibility,

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p p p y g g , g g p y,and keeping groups motivated and moving forward. However, games do not foster the expectation that leadership roles last forever. Someone leading a guild today may grow weary of the stress and hand over the reins after a month or two. The leader of a raid knows that someone else’s skills and experience may be better suited to commanding the next effort. Even during the frenzied activity of a raid, the leadership role can be transferred as conditions change or because the person in charge doesn’t happen to be around when the need for a decision arises. Notably, choices about who will lead and who will follow are often made organically by the group—frequently because someone volunteers to take over—not by some higher authority.”

"Nevertheless, our findings reinforced our basic premise that leadership in online games offers a sneak preview of tomorrow’s business world. In broad terms, that environment can be expected to feature the fluid workforces, the self-organized and collaborative work activities, and the decentralized, nonhierarchical leadership that typify games. In more specific terms, we found several distinctive characteristics of leadership in online games that suggest some of the qualities tomorrow’s business leaders will need in order to achieve success.”

"Most writing about leader selection and development focuses on people’s backgrounds and natural

Excerpts from Leaderships Online Labs (cont)

g p p p gtalents. Whether leadership ability is inborn or acquired through training, the assumption is that expertise resides within the individual. Our study provided us with an arrestingly different view: Perhaps the right environment is what really matters, whoever the leader happens to be. This concept, which as far as we know is absent from the academic and professional literature about leadership, wasn’t something that we set out to prove. The notion arose from the experienced gamers on our research team, who were puzzled by our initial preoccupation with the individual qualities of game leaders. “If you want better leadership,” they asked, “why not change the game instead of trying to change the leaders?”

So we began to focus on identifying distinctive aspects of online game environments that could improve leadership in business and other real-world settings. We pinpointed at least two properties of games that

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p g p p p p gwe believe facilitate and enhance leadership: nonmonetary incentives rooted in a virtual game economy; and hyper-transparency of a wide range of information, including data about individual players’ capabilities and performance. These two elements—along with the rich mix of text, audio, and visual communication in games—make it easier for leaders to be effective. Players know exactly what they should be doing and, to a large degree, have the tools they need to manage themselves. This suggests that organizations can benefit by selectively “gamifying” their work environments in order to improve the quality of leadership—not in the future but right away."

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Inspire, Inform, EducateInspire: Expect and challenge management to lead, not follow the

Lean|Agile Transformation

Lean|Agile leadership trainings and workshopsScaled Agile Framework Training and CertificationLunch and learns:• Principles of Product

Lean|Agile leadership trainings and workshopsScaled Agile Framework Training and CertificationLunch and learns:• Principles of Product

Form and support a Lean|Agile working groupInclude managementCreate and work the transformation backlogImplement effective

Form and support a Lean|Agile working groupInclude managementCreate and work the transformation backlogImplement effective

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• Principles of Product Development Flow, Reinertsen

• Agile Software Requirements,Leffingwell

• Lean Software Development, Poppendieck

• Principles of Product Development Flow, Reinertsen

• Agile Software Requirements,Leffingwell

• Lean Software Development, Poppendieck

Implement effective, continuous communication plan

Implement effective, continuous communication plan

Conclusion

The foundation of Lean is leadershipis leadership

The foundation of SAFeis you

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Next Steps

Browse the framework at scaledagileframework.comRead Agile Software gRequirements

Get training, certification, courseware and implementation tools through Scaled Agile Academy

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Start/accelerate your Lean|Agile transformation nowImplement your first Agile Release Train